The C3 FEI contract is a commodity SB (Spread Bet) in the NGL group that represents the outright price of propane based on the Argus Far East Index (AFEI).
Contract Purpose
This outright contract allows market participants to:
- Gain direct exposure to the price of propane in East Asia
- Hedge against price fluctuations in the Asian propane market
- Speculate on the future price direction of propane in the Far East region
Market Significance
- Benchmark Status: The AFEI serves as a key reference for propane pricing in East Asia
- Regional Indicator: Provides insights into supply and demand dynamics for propane in the Asian market
- Petrochemical Industry Impact: Reflects the cost of a key feedstock for the petrochemical industry in Asia
Trading Benefits
- Price Discovery: Offers a transparent mechanism for determining the price of propane in East Asia
- Risk Management: Allows hedging against price volatility in the Asian propane market
- Market Access: Provides exposure to one of Asia’s key propane benchmarks
This contract is particularly valuable for petrochemical companies, trading houses, and financial institutions active in the Asian propane market. It offers a tool for managing price risks and implementing trading strategies related to propane in East Asia.